tax question

[AznAnarchy99]

Is there any benefit of me filing taxes myself compared to letting my mon claim me as her dependent?

If it means anything she does not back me financially at all and I'm 19

 

[highland145]

Do you work/pay taxes?

 

[AznAnarchy99]

Do you work/pay taxes?

Yes I do.

 

[highland145]

There are some tax pros here and there are a bunch of variables the you may not want to post (income, other dependents, deductible items, etc.). But if she claims you then you can not claim yourself on your own taxes which will increase your tax burden.

PM one of the pros when they chime in.

 

[NutBucket]

As far as I'm aware you have nothing to gain by not being claimed as a dependent....unless you're talking about things like scholarships, financial aid, etc. In that case it may be to you benefit to not be claimed as a dependent.

 

[spidey07]

As far as I'm aware you have nothing to gain by not being claimed as a dependent....unless you're talking about things like scholarships, financial aid, etc. In that case it may be to you benefit to not be claimed as a dependent.

It affects his taxes a great deal if somebody claims him as a dependent. He loses a lot of money and the person that does reduces their taxes a good deal.

 

[NutBucket]

Eh, unless I'm just dead wrong I recall trying it both ways one time and it not really making any difference.

As I recall, the form asks whether you can be claimed as a dependent, not are you claimed as a dependent.

Again, its been a few years so.....

 

[CycloWizard]

There are some tax pros here and there are a bunch of variables the you may not want to post (income, other dependents, deductible items, etc.). But if she claims you then you can not claim yourself on your own taxes which will increase your tax burden.

PM one of the pros when they chime in.

These things are all givens on ATOT: $100k+ income, 12 wives, 0 children, $2 million house, eight Ferraris and a Lamborghini in the driveway.

 

[highland145]

These things are all givens on ATOT: $100k+ income, 12 wives, 0 children, $2 million house, eight Ferraris and a Lamborghini in the driveway.

You forgot the partridge in the pear tree.

 

[CycloWizard]

You forgot the partridge in the pear tree.

Ah, didn't realize that counted as a dependent.

 

[highland145]

Ah, didn't realize that counted as a dependent.

I gave it a name and a ssn.

 

[BoomerD]

Do you live at home?

If so, and/or you're a college student, you will still be considered to be her dependent.

If not, you have a good argument for not being a dependent.

 

[dullard]

Since she doesn't financially support you at all, she cannot claim you as a dependant. This isn't a question of option A vs option B. It isn't a choice. Legally, she can't do it. You must file on your own.

That said, people cheat on their taxes all the time. If you and she both choose to cheat then here are the possible outcomes:

1) You both could be subject to penalties, back payments, and/or interest.

2) If she claims you, then she will get an extra exemption on her taxes. If you claim yourself, then you get that exemption.

3) In most cases, the parent is usually in a higher tax bracket. Thus, an exemption for her is usually more valuable. Suppose she is in the 25% tax bracket and you are in the 10% tax bracket. In that case, by claiming you, she'd save 25% * $3650 = $912.50 on her taxes while you'd pay 10% * $3650 = $365.00 more on your taxes.

4) I'm ignoring other welfare-type effects for now unless you tell us otherwise that she'd qualify.

Thus, it is up to you if you want to violate the tax laws and pay more taxes so that your mom can also violate the laws and pay less taxes. I assume you'd split the gain with her and you'd split the fines with her if either of you are caught.

 

[AznAnarchy99]

Do you live at home?

If so, and/or you're a college student, you will still be considered to be her dependent.

If not, you have a good argument for not being a dependent.

Don't live at home and haven't since I was like 15 but I am a college student.

 

[BoomerD]

Don't live at home and haven't since I was like 15 but I am a college student.

You SHOULD be able to file as independent in this case. Your income would need to be high enough to show that you're supporting yourself though...

 

[AznAnarchy99]

You SHOULD be able to file as independent in this case. Your income would need to be high enough to show that you're supporting yourself though...

Ya but I wanna know would it be a greater benefit for me to file as an independent? or would my mom get a big tax reduction if she claimed me?

 

[wiredspider]

We don't know the full picture of your situation, I would just claim yourself and file independently if your mom hasn't asked to claim you.

If you really want to know the difference, then use anyone of the many tax filing applications out there and run it with your mom claiming you and without your mom claiming you.

Depending on your income levels, claiming you might allow her to claim additional tax credits like EITC. And if there were to be some kinda tax refund/rebate type thing, you would not be able to claim it yourself if you are filed as a dependent, only your mom would get it.

That's just some of things I can think, I'm sure there are other issues as well.

 

[Xcobra]

Ya but I wanna know would it be a greater benefit for me to file as an independent? or would my mom get a big tax reduction if she claimed me?

Basically, if you have income greater than 5,700 (standard deduction) or your itemized deductions, AND your exemption amont, ie claiming yourself (3,650), you will have a tax liability (this does not take into account any credits). It really boils down to how much income you have on your return. Either your mom or you can claim yourself, as long as both are not claiming yourself. The IRS will probably not do anything as long as someone is not claimed twice. But from the look of it, she definitely can't claim you, per the rules.

 

[BoomerD]

We don't know the full picture of your situation, I would just claim yourself and file independently if your mom hasn't asked to claim you.

If you really want to know the difference, then use anyone of the many tax filing applications out there and run it with your mom claiming you and without your mom claiming you.

Depending on your income levels, claiming you might allow her to claim additional tax credits like EITC. And if there were to be some kinda tax refund/rebate type thing, you would not be able to claim it yourself if you are filed as a dependent, only your mom would get it.

That's just some of things I can think, I'm sure there are other issues as well.

Also to consider are the various credits for college tuition that the mom may be able to take that he may not be eligible for...or may not get as much benefit from as the mom would get. (depends on income levels, tax owed, whether the credit is refundable or not, etc.)

 

[dullard]

Ya but I wanna know would it be a greater benefit for me to file as an independent? or would my mom get a big tax reduction if she claimed me?

I already answered that to the best that anyone can answer it with the information you have given. If you want us to say more you have to tell us three things:
1) What tax bracket are you in?
2) What tax bracket is she in?
3) Are you both willing to violate the tax laws?

 

[PlasmaBomb]

I gave it a name and a ssn.

:biggrin:

That brightened my day.

 

[vi edit]

Good luck if you are doing this for financial aid purposes. My wife tried that for a couple years and didn't get approved from the state/school. If you are under 25 (or something in that range) getting declared as an independent for college purposes is virtually imposible.